The market ended higher on the second trading day of Samvat 2078, with both the Sensex and the Nifty closing higher despite mixed global cues on November 8.
After a positive start, the market gave up gains and remained volatile but regained momentum in the afternoon session to end near the day's high amid buying in the PSU banks, IT, power, metal and oil & gas stocks.
At close, the Sensex was up 477.99 points, or 0.80 percent, at 60,545.61 and the Nifty was up 151.70 points, or 0.85 percent, at 18,068.50.
"In a volatile session of trade, the bulls emerged strong with several stocks across cement, consumer durables and PSU names witnessing good buying interest from investors," said S Ranganathan, Head of Research at LKP Securities.
The broader markets recovered strongly in the afternoon trade with IT stocks, exchanges, gold loan companies seeing accumulation.
Both the midcap and smallcap indices saw hectic activity, with several stocks indicating moves of a good festival season, he added.
The BSE midcap index rose 1.2 percent and smallcap index added 0.78 percent.
IOC, Titan Company, Bajaj Finserv, UltraTech Cement and Tech Mahindra were among the major Nifty gainers. Losers included IndusInd Bank, Divis Labs, M&M, SBI and Maruti Suzuki.
On the sectoral front, selling was seen in Nifty pharma and banking names, while energy, infra, IT, metal and PSU bank indices rose 1-2 percent.
Stocks and sectors
On the BSE except healthcare and bank, all other sectoral indices ended in the green with capital goods, IT, metal, power, oil & gas and realty indices up 1-2 percent.
Among individual stocks, a volume spike of more than 5,000 percent was seen in IndusInd Bank, Ipca Laboratories and Torrent Pharma.
Long buildup was seen in Whirlpool India, JK Cement and Birlasoft, while short buildup was seen in IndusInd Bank, Atul and Divis Laboratories.
More than 250 stocks, including Union Bank of India, Phoenix Mills, L&T and HDFC, hit a 52-week high on the BSE.
Technical View
The Nifty has formed a bullish hammer candle on the daily scale with long lower shadow.
The Nifty has to hold above 18,000 for an upmove towards 18,150 and 18,350, while on the downside, the index has major support at 17,850 and 17,777, said Chandan Taparia, Vice President | Analyst-Derivatives at Motilal Oswal Financial Services.
Outlook for November 9
Shrikant Chouhan, Head, Equity Research (Retail), Kotak Securities
The key concern is that the Nifty is still trading below 20-day SMA or below 18,100. We are of the view that 18,100 would be the next intraday breakout level for the day traders and above the same the uptrend momentum will continue up to 18,150-18,200.
On the flip side, strong support is seen near 17,900 and if it slips it, the uptrend would be vulnerable.
Ajit Mishra, VP-Research, Religare Broking
The recent buoyancy in the global markets has relieved the participants amid mixed domestic cues, however, it’s too early to call it a trend reversal.
As the festival season is behind us, the focus will shift back to earnings announcements. Besides, domestic macro data outcome (IIP & CPI) and global cues will be closely tracked.
The Nifty should make a decisive move above 18,100 to resume the trend else consolidation or profit-taking would resume.
We recommend continuing with a stock-specific trading approach and focusing on the themes and sectors that are seeing noticeable buying interest.
Palak Kothari, Research Associate, Choice Broking
On the technical front, the index has formed a hammer candlestick on the daily time frame indicating a further uptrend.
The stochastic indicator is seeing a positive crossover, suggesting a northward journey.
The index has also settled above the 21-day moving average, adding further bullish momentum to the counter. The index has a support at 17,750 and resistance at 18,200.
Disclaimer: The views and investment tips expressed by experts on Moneycontrol.com are their own and not those of the website or its management. Moneycontrol.com advises users to check with certified experts before taking any investment decisions.
Taking Stock: Sensex up 478 points, Nifty above 18,000; IT, metal, PSU banks gain - Moneycontrol.com
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